New Delhi: Union Budget 2023-24 has a slew of measures to boost exports and help accelerate the growth of manufacturing in the country, said an official press release by the government, adding that the indirect tax simplification and rationalisation have a clear export-oriented focus, as per an official press release.
The Department of Commerce's recommendation on lab-grown diamond (LGD) has been accepted whereby the research grant of Rs. 242 crores over a period of 5 years to IIT Madras has been approved. This will enable the indigenisation of the manufacturing process of LGD, as per an official release. "Further, a reduction of duty on LGD seeds from 5 per cent to 0 per cent has also been accepted which will result in reducing the cost of production of LGD growers and make our LGD exports globally competitive. The recommendation of the Department of Commerce for creating separate HS Codes for LGD has also been accepted. It would enable tracking the international trade in lab-grown diamonds," it read.
According to the release, custom duty on articles of precious metals such as gold, silver and platinum has been increased from 20 per cent to 25 per cent thereby increasing the duty differential to 10 per cent over gold/silver/platinum bars. This will boost domestic manufacturing in the sector and result in import substitution.
Custom duty on imitation jewellery has been enhanced from 20 per cent to 25 per cent. This will discourage cheap imports from China and encourage domestic manufacturing.
"The reduction in import duty on fish meals from 15 per cent to 5 per cent will make the shrimp industry more competitive in the country and boost exports. The fish meal constitutes 40% of the cost of production of shrimp. This will also prevent the incidence of juvenile fishing which is used for fish meal in domestic production and will thereby improve our marine fish stock availability," it read.
The recommendation of the Department of Commerce for an increase in import duty on compound rubber from 10 per cent to 25 per cent has been agreed to, it said, adding that this will reduce the import of compound rubber in the country and boost demand and prices for natural rubber produced in the country.
This will go a long way in supporting our natural rubber farmers and further increasing its production in the country, it added.
The Budget has identified the financial sector as a priority sector. Measures to enhance business activities in GIFT IFSC, a comprehensive review of existing financial sector regulations and support for digital payments will promote India's financial services exports in the long run, it said.
Integrated development of at least 50 tourism destinations and measures related to the enhancement of tourist experience will provide impetus to foreign tourist arrival in India which will enhance tourism service exports, it said.
Further, as per the release, leveraging India's demographic dividend, 30 International Skill India Centres announced in the budget will help in making Indian professionals globally competitive and will foster the growth of services exports through various modes.
"Reduction of Customs duty on components of mobile phones, lithium-based batteries, open cells for TV panels etc. would go a long way in integrating into the global value chain and enhancing India's exports of these products," it read.